Great Escapade Business

Posts Tagged ‘Small’

Starting a small business can be frightening and requires plenty of careful planning. There are many small business ideas which can be beneficial as well as economical. The last thing a new entrepreneur or new business needs is to be found in a financial state due to unnecessary spending. When starting a small business, the key is to remember it is “small” and initially the intention should be to limit spending until a profit is made.

Beneficial small business idea could include marketing strategies such as web site promotion. An Internet web site can be set up relatively inexpensively and can reach a limitless audience. Because the Internet provides worldwide access, people from anywhere can access a business web site. Using relevant keywords that will be picked up by search engines can take potential customers to a small business web site. Once there the individual should be able to read an interesting description of the product or service being promoted. Clear and concise content is best to use for a business web site.

Other small business ideas might entail email marketing. Again there’s a need for a well-constructed written message. Choosing a headline or subtitle that is unique and catchy will get the recipient’s attention and entice them to read on. If using email marketing as one of their small business ideas, the entrepreneur should probably ask other people to read the content, asking for objective opinions.

It is important to figure out the target audience when considering small business idea. Spending unnecessary time and money advertising to people who are definitely not interested in the product or service is futile. An entrepreneur’s time and money would be better spent trying to attract the targeted audience.

The Internet is a great resource for small business idea. Thousands of people have great ideas for a business venture but require assistance getting the ball rolling. Fortunately there is plenty of help available for new and aspiring entrepreneurs. There are government web sites that contain valuable small business idea. There are web sites designed by experienced business people to assist those interested in starting a small business. Using a popular search engine like Google or Yahoo can very quickly connect an individual to beneficial small business idea. Browsing the many informative web pages available can equip people to begin their business or marketing plan using the suggested small business idea. Making smart business marketing decisions early in the game can transform a small business into a thriving prosperous company.

One of the most talked-about forms of financing, Equity financing (venture capital) was popular in the nineties. These companies raise money from investors in order to manage a portfolio of privately held companies. In short, they are intermediaries. They fund companies that are in early-stage development, expansion, or for special cases such as turnarounds or leverage buyouts.

You can seek equity from business partners who work with the SBA. Small Business Investment Companies (SBICs) are privately owned venture capital firms that work with and are licensed by the SBA. These companies use SBA funds (obtained at favorable rates) and their own money to invest in promising small companies, grant long-term loans, and provide other debt capital. SBICs also assist management with experience, contacts, and business expertise.

Owner’s Investment. If you are forming a new business, be prepared to invest a certain portion of the start-up costs personally. Lenders rarely finance 100% of the business.

To qualify for SBIC financing, a company has to have a net worth of million or less, and the average after-tax income cannot exceed million for the last two years. Alternative size standards apply for companies to which the above criterion is too low. For more information, visit http://www.sba.gov/INV/forentre.html.

Note: The process for investment evaluation by an SBIC is similar to any other venture capital firm. Therefore, you will have to build a business plan, gather your financial statements, and—most importantly—research the SBIC that you plan to approach. For a list of SBICs in your area and their investment criteria visit http://www.sba.gov/INV/index.html .

One of the most talked-about forms of financing, Equity financing (venture capital) was popular in the nineties. These companies raise money from investors in order to manage a portfolio of privately held companies. In short, they are intermediaries. They fund companies that are in early-stage development, expansion, or for special cases such as turnarounds or leverage buyouts.

You can seek equity from business partners who work with the SBA. Small Business Investment Companies (SBICs) are privately owned venture capital firms that work with and are licensed by the SBA. These companies use SBA funds (obtained at favorable rates) and their own money to invest in promising small companies, grant long-term loans, and provide other debt capital. SBICs also assist management with experience, contacts, and business expertise.

Owner’s Investment. If you are forming a new business, be prepared to invest a certain portion of the start-up costs personally. Lenders rarely finance 100% of the business.

To qualify for SBIC financing, a company has to have a net worth of million or less, and the average after-tax income cannot exceed million for the last two years. Alternative size standards apply for companies to which the above criterion is too low. For more information, visit http://www.sba.gov/INV/forentre.html.

Note: The process for investment evaluation by an SBIC is similar to any other venture capital firm. Therefore, you will have to build a business plan, gather your financial statements, and—most importantly—research the SBIC that you plan to approach. For a list of SBICs in your area and their investment criteria visit http://www.sba.gov/INV/index.html

In South Africa most marketers here are still looking for more effective marketing tips that would help them with their small businesses.  These marketing tips are very important for them to make their businesses expand and to reach more potential buyers and customers.  Through this article you will get to learn some amazing tips that would surely help you with your small business here in South Africa.

Many small businesses here in South Africa struggle with the overwhelming tasks of keeping and managing their website.  There always seems to be so much to do, yet there is no enough time to keep the entire task done.  So to help you out I gathered some of the most important marketing tips that would help you manage your small business here in South Africa.

Here are the marketing tips you need.

1.  Make your content packed with information

One of the most important marketing tips you need for your small business to expand is to make sure that your site wherein you post your services and products is packed with information which your customers need.  The better and high quality your contents are the higher of chance you will get from your business.  Always remember that relevant information and details are essential and actually the main key for your business to gain success.  This is one of the many marketing tips you must consider if you want your small business here in South Africa to flourish.

2.  Keep your content fresh

Having lots of content in your blog or in your site wherein you market your services and products are great but if it’s a hundred years old then it’s nothing but trash!  The search engine actually monitors this.  It knows exactly how often you update your blog or your site.  To help you expand your small businesses here in South Africa see to it that you update your site more often.  This is one of the most important marketing tips you need to follow to reach more potential customers and buyers here in South Africa.  By following these marketing tips you will surely reach the numbers of clients you want and need plus the sum total of sales you need for your business.

3.  Don’t forget to organize your website

Did you know that if you will only keep you site organize, the search engines as well as your customers will certainly thank you?  This is one of the most essential marketing tips you need to adhere if you want to reach the top list in those search engine pages.  This is also one of the many marketing tips that could help you reach more clients and buyers.

Small businesses here in South Africa are actually popping here and there and sooner than you think the competition will surely become tough.  Before you get caught on the web of this competition, make sure that you get yourself familiar with all of these marketing tips.  These marketing tips will surely help you get through that competition and will certainly provides you all the positive results you want and need for your business.

Lots of people are looking for small business ideas.  However, many of them are looking for employment at home.  What do I mean by that?  They want someone to pay them to stay at home.  They are not planning on starting a business from home.  They want to be employed, yet, work at home.

Big difference.  If that’s what you want go to Google, search for “work from home jobs” and you will find 670 million listings.  That’s a lot!  Be very careful because most of the listings are by people who want to sell you something, however, there are legitimate offers that will allow you to earn some money.  Also, look at the date of the listing as some are years old and may not be relevant in today’s economy.

This article is for you, the person who wants small business ideas because you want to start a small home based business from home.

You know what you want – a small business you can operate from your home.

You know when you want to start your home business – you want to start it part-time while you continue in you present position.

You know why you’re starting a business from home – you want personal and financial freedom.

Now, you want to start a “written” list of the small business ideas you research.  Why does it have to be a “written” list?  Two reasons; if you don’t write it down you will continue to think about a specific idea over and over again rather than open your mind to new ideas.  And the second reason is that your computer is a great storage and processing technological wonder, however, there is something about writing a thought down which allows your subconscious mind to become involved in your evaluation process.  I’m not going to get into the metaphysics of the process, it works, please write down your ideas.

The Internet is a great place to get small business ideas, however, be warned there are millions of bits of information available on the Internet.  For the most part it is self regulating, that is anybody can say anything they want.  Double check all the information you get, both the positive and the negative.  Many people make negative statements about small business ideas without knowing anything about the topic they are commenting on.

The important thing is for you to determine what you do well that people need or want and are willing to pay for, use the Internet as an information source.  Many of the postings on the Internet will be from people who found a way to convince others to send them money and will try to convince you that you get nothing unless you can do the same to others.  That’s not the way to build a lasting business.

Be careful!

You will find thousands of small business ideas.  Which are the best small business ideas?  I believe that the quickest and easiest of the home based businesses to start are a networking business or an online home based business affiliate.  Personally, I favor a networking business.

Why a networking business?  Network Marketing, in my opinion, is the fastest way to financial freedom with the least investment and highest probability of success.  A network marketing company will create a product, do all the administrative record keeping, manufacturing, warehousing, shipping and customer service while you, the independent distributor, only pay a fee to join, usually less than joining Costco.

You spend your energy building a wholesale business, much like a wholesale buying club, with the organization of business builders you choose.  It doesn’t get much simpler nor rewarding.  You get to work with a network of your friends, family and close associate while, together, you build financial freedom for the entire network.

A misconception that many seem to have about network marketing is that it is more like a chain letter than a business.  Network marketing, like any business, requires an investment in time and money to make it work.  Just like any business you have to select the right product to market and the right people to work with to market it.

The beauty of network marketing is the product is the business.  Thats right; you’re not selling a product, you’re selling a lifestyle.  If you want to learn more about that concept please contact me.

State laws have been relaxed to make it easier for small business to raise start-up and growth financing from the public. Many investors view this as an opportunity to “get in on the ground flora€? of an emerging business and to “hit it bigâ€? as the small businesses grow into large ones.

Statistically, most small businesses fail within the first few years. Small business investments are among the most risky that investors can make. This guide suggests factors to consider for determining whether you should make a small business investment.

Risks and investment strategy

A basic principle of investing in a small business is: Never make small business investments that you cannot afford to lose! Never use funds that may be needed for other purposes, such as college education, retirement, loan repayment, or medical expenses.

Instead, use funds that would otherwise be used for a consumer purchase, such as a vacation or a down payment on a boat or a new car.

Above all, never let a commissioned securities salesperson or office or directors of a company convince you that the investment is not risky. Small business investments are generally hard to convert to cash (illiquid), even though the securities may technically be freely transferable. Thus, you will usually be unable to sell your securities if the company takes a turn for the worse.

In addition, just because the state has registered the offering does not mean that the particular investment will be successful. The state does not evaluate or endorse any investments. If anyone suggests otherwise, they are breaking the law.

If you plan to invest a large amount of money in a small business, you should consider investing smaller amounts in several small businesses. A few highly successful investments can offset the unsuccessful ones. However, even when using this strategy, only invest money you can afford to lose.

Analyzing the investment

Although there is no magic formula for making successful investment decisions, certain factors are considered important by professional venture investors. Some questions to consider are:

Ø How long has the company been in business? If it is a start-up or has only a brief operating history, are you being asked to pay more than the shares are worth?

Ø Consider whether management is dealing unfairly with investors by taking salaries or other benefits that are too large in view of the company€™s stage of development, or by retaining an inordinate amount of equity stock of the company compared with the amount investors will receive. For example, is the public putting up 80 percent of the money but only receiving 10 percent of the company shares?

Ø How much experience does management have in the industry and in a small business? How successful were the managers in previous businesses?

Ø Do you know enough about the industry to be able to evaluate the company and to make a wise investment?

Ø Does the company have a realistic marketing plan and do they have the resources to market the product or service successfully?

Ø how or when will you get a return on your investment?

Making money on your investment

The two classic methods of making money on an investment in a small business are resale of stock in the public securities markets following a public offering, and receiving cash or marketable securities in a merger or other acquisition of the company.

If the company is not likely to go public or be sold out within a reasonable time (i.e., a family-owned or closely held corporation), it may not be a good investment for you –despite its prospects for success –because of the lack of opportunity to cash in on the investment. Management of a successful private company may receive a good return indefinitely through salaries and bonuses, but it is unlikely that there will be profits sufficient to pay dividends in proportion with the risk of the investment.

Other suggestions

Investors must be provided with a disclosure document –a prospectus –before making a final decision to invest. You need to read this material before investing.

Even the best small business venture offerings are highly risky. If you have a nagging sense of doubt, there is probably a good reason for it. Good investments are based on sound business criteria and not emotions. If you are not entirely comfortable, the best approach is usually not to invest. There will be many other opportunities. Do not let a securities salesperson pressure you into making a decision.

It is generally a good idea to see management of the company face-to-face to size them up. Focus on experience and record of accomplishment rather than a smooth sales presentation. If possible, take a sophisticated businessperson with you to help in your analysis. Beware of any information that differs from, or is not included in the disclosure document. All significant information is required by law to be in the disclosure document. Immediately report any problems to your state Office of the Commissioner of Securities.

Conclusion

Greater numbers of public investors are “getting on the ground flora€? by investing in small businesses. When successful, these enterprises enhance the economy and provide jobs. They can also provide new investment opportunities, but the advantages must be balanced against the risky nature of small business investments.

Individuals with bad credit know the sting of its financial repercussions–whether they cannot qualify to finance a car or home, or otherwise. Millions of people are affected by bad credit, including numerous entrepenuers and small business owners. Phoenix small business investing officials know it is more difficult than ever to get a loan to help get a business off the ground. Still, it is not impossible.

Establish Business Credit
While Phoenix small business funding experts know that many small business owners do not want to wait years to apply for a loan, they recommend building business credit if a business owner has bad personal credit. The process can take a few years but Phoenix small business investing professionals highly suggest it because you may be able to quality for a better, low interest loan in the future. This is simple because if established correctly your business credit will be in no way tied to your personal credit, which means that when you go in to apply for a loan your personal credit will not be checked.

I. Formalize Your Business
Start by formalizing your business. This will immediately establish that it is seperate from your personal finances. LLCs and sub chapter S corporations are too formal types of business, for example.

II. Business Checking Account
Next, Phoenix small business investing officials state that you will need to start a business checking account that is under the formal name of your company. Make all business transactions through this account, and avoid using your personal accounts for business purposes.

III. Business Phone Line
You should also set up a business phone line under the formal name of your business. Contact phone companies to ensure that they report payment history and other information to the credit bureaus. This is important. If a company does not do this, you should move on and find a company that does.

IV. Trade or Vender Credit
Phoenix small business investing experts suggest setting up vendor credit. Vendor credit is when you acquire business supplies, equipment, and more from a vendor, and they finance you the supplies to you. You pay the vendor back over time and can keep an open line of credit with some vendors, where if you are making your payments on time you can continue to get more supplies. Small business funding authorities say it’s important to find vendors who do not require the use of any personal information that is tied to your personal finances and credit, like your social security number, for example. Everything should be done using business information and finances only.

V. Business Credit Cards
Lastly, you will need a few business credit cards. Again, they should be under the formal business name and you should always pay them off on time. Just as with vendor credit, you need to make sure that the cards are in no one tied to your personal credit. And just as with the phone line, you must make sure that the credit card companies report your payment history to the credit bureaus.

SBA Investment program

The Small Business Investment Company (SBIC) Program was created by Congress in 1958 to provide an alternative source of financing for entrepreneurs.

SBIC’s are licensed by SBA. SBIC’s are professional, privately owned and managed       venture funds that participate in a partnership between government and the private sector economy. This program provides comparatively inexpensive equity capital, long-term loans, and debt-security investments. SBIC Program is a “fund of funds.”

SBIC’s may not invest in the following: finance and investment companies or finance-type leasing companies; unimproved real estate; companies with less than 51 percent of their assets and employees in the United States; passive or casual businesses or companies that will use the proceeds to acquire farmland. SBIC’s may not provide funds for companies’ whose primary business activity is deemed contrary to the public interest.

Application process

It is very important to present yourself in the most professional way possible, to have business plan and show experience in the industry. Lender takes into consideration the following: business and personal credit history, company’s financial statements and cash flow projections.

Business owner’s investment (Equity)

Loan applicants must have a reasonable amount of capital invested in their business.

You need to show the lender that business can operate on a sound basis with prospective capital structure. Lenders want you to contribute your own assets and to assume personal financial risk to establish the business before asking them to commit any funding. Lenders know that you are more likely to do everything in your power to make the business successful if you infused significant personal investment in the business.

Examination of the debt-to-worth ratio will be performed by a lender in order to evaluate solidity of the project. Personal investment can be made by assets that applicable to the business or by cash. Assets value is determined by financial statement for existing business or by appraisals and invoices for start-ups.

Low debt to equity ration shows the firm’s financial health and indicates that owner is committed to the business and decreases possibility of default and particularly very important for a new business.

Your business plan should show financial projections for at list five years and prove to the lender that company’s expected earnings are sufficient to cover loans payments. The higher the projected profits the greater is a probability that the loan will be approved. Applications with high debt, low equity, and unsupported projections are candidates for loan denial.

Yury Iofe, MBA

Universal Business Structured Solution

More educational resources by Yury Iofe:

www.ubssolution.com

http://www.ubssolution.com/Education.html

Venture Capital Program (Equity Financing)

SBA’s Small Business Investment Company (SBIC) Program is an investment partnership through which SBA provides venture capital to small businesses. SBICs are privately owned and managed investment funds, licensed and regulated by the SBA.

SBICs are similar to venture capital, private equity and private debt funds in terms of how they operate and their ultimate objective to generate high returns for their investors.  But, SBICs limit their investments to qualified small business.

Venture capital that for reasons of size, assets, and stage of development cannot seek capital from more traditional sources, such as public markets and banks. Venture capital is a type of equity financing that addresses the funding needs of entrepreneurial companies. Investments made in exchange for shares in the invested company.
Venture capital financing:

Aims for higher risks in exchange for potential higher returns;
Financing young, high-growth companies.
For a longer investment horizon than traditional financing;
Invests equity capital, rather than debt;
Actively monitors companies via board participation, strategic marketing, governance, and capital structure.

SBA provides venture capital through the (SBIC) Small Business Investment Company Program, a unique public-private investment partnership. SBA itself does not make direct investments. It works with SBICs that are privately owned and managed investment firms licensed by SBA to provide financing to small businesses with private capital they raise and with funds borrowed at favorable rates through SBA

What is Venture Capital?

An unsecured Financing to young, private companies with the potential for rapid growth.

Venture capital typically comes from high net worth individuals (“angel investors”) and venture capital firms and carries a high degree of risk. Venture capital is long-term investment project that allows companies the time to mature into profitable organizations.

Venture capital is an active form of financing. Investors seek to add value to the companies in which they invest in an effort to help them grow and achieve a greater return on the investment. This requires active involvement; almost all venture capitalists will, at a least, want a seat on the board of directors.

But eventually, the objective of equity investors is to achieve a superior rate of return through the eventual and timely exit strategy.

The Process

Business Plan Submission. The venture capital reviews a business plan, talks to the business if it meets the fund’s investment criteria

Due Diligence.  Venture Capital performs due diligence, including looking at the company’s management team, market share, products and services, operating history, and financial statements.

      Investment. After completion of due diligence if venture capital remains interested, an

      investment is made in the company in exchange for company’s equity and/or debt.  

      Execution. Venture capital becomes actively involved in the company.

     Exit. Exits are usually performed via mergers, acquisitions, and IPOs (Initial Public  

     Offerings).

Yury Iofe, MBA

Universal Business Structured Solution

More educational resources by Yury Iofe:

www.ubssolution.com

http://www.ubssolution.com/Education.html

• ISBN13: 9781413310610
• Condition: NEW
• Notes: Brand New from Publisher. No Remainder Mark.

Product DescriptionFor all your tax deductions, start-ups to success, you have to pull off! Fully for 2009 Make more money back for your small business by paying the IRS less updated. What do you mean derived! Show you how the business deductions are entitled to – to maximize fast, easy and legal. This comprehensive yet easy to read book is organized in convenient categories with common deductions, including start-up exp. . . More>>

Deduct It!: Lower Your Small Business Taxes